Morvatjou v Moradkhani

In *Morvatjou v Moradkhani*, the appellant, Mr. Morvatjou, appealed a decision of the District Court of New South Wales concerning damages awarded for past and future economic loss following a workplace accident. The respondent, Mr. Moradkhani, was the employer. The core of the dispute revolved around the quantification of Mr. Morvatjou's lost earning capacity, particularly where his disclosed income in tax returns did not accurately reflect his actual earnings. A cross-appeal was also dismissed.

The legal issues before the Court of Appeal were twofold. Firstly, it had to determine whether the falsity of tax returns needed to be admitted before an allowance could be made for a lost earning capacity that exceeded the disclosed income. Secondly, the court was required to consider whether Mr. Morvatjou qualified for an award of superannuation for future economic loss, which depended on whether he was an employee or an independent contractor for the purposes of the *Superannuation Guarantee (Administration) Act 1992* (Cth). The court also considered the responsibility of legal advisers to adduce the best available evidence of lost earning capacity.

The Court of Appeal allowed the appeal, setting aside the original verdict and judgment. The court reasoned that it was open to infer a higher earning capacity than that disclosed in tax returns, even without an admission of falsity, provided there was sufficient evidence to support such an inference. The court also found that Mr. Morvatjou was an employee for the purposes of the superannuation legislation. The court ordered that the original verdict and judgment be set aside and directed the parties to attempt to agree on a recalculated amount of damages. If agreement could not be reached, detailed submissions were to be made to the court to determine the appropriate orders. The cross-appeal was dismissed, and the respondents were ordered to pay the appellant's costs.